Angel Investor Tax Credit

The credit is 50 percent of the investor’s cash investment in the qualified securities of an eligible Kansas business. If the amount of the credit exceeds the investor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used. The credit is limited to $50,000 for a single Kansas business or a total of $250,000 of tax credits for a single year per investor.

The cumulative aggregate amount of angel investor tax credits allowed shall not exceed $6 million for each tax year. The 2016 Legislature extended this tax credit until 2021. An accredited investor is a natural person or an owner of a permitted entity investor, who is of high net worth, as defined in 17 C.F.R. 230.501(a) as in effect on the effective date of the act.

The SEC defines an accredited investor as any natural person whose individual net worth, or joint net worth with that person’s spouse exceeds $1,000,000, or any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year. (Schedule K-30, K.S.A. 74-8133).